Debt financing of companies

Abstract

This thesis proposes to cover all forms of debt financing of companies. Thus, in the first two chapters of this thesis, I will tackle direct debt financing. This includes short term financing in the form of overdraft facilities, medium- and long-term loans as well as the issue of debt securities. In particular, the second chapter will deal exclusively with the issue, acquisition and transfer of debentures. Following this outline of direct debt financing. I will proceed to examine indirect ways of debt financing of companies. Thus mention will be made of finance leasing as opposed to operating leases and contract hire facilities. In particular, the finance leasing will be examined as an alternative to the purchase of an asset together with all its advantages and disadvantages. I also propose to highlight some of the gaps in the Maltese laws which possibly hinder the development of the leasing industry in Malta. My last chapter will be divided into two parts. I will deal with factoring and forfaiting. these trends being on the increase in the international scenario but rather unknown to the Maltese market.